WASHINGTON (Reuters) – Sikorsky Aircraft, a unit of United Technologies Corp, won an initial $1.24 billion contract to develop and build six new U.S. presidential helicopters, the first step toward a fleet of 21 new aircraft by 2023, the Pentagon announced on Wednesday.
The award capped years of efforts by the U.S. Navy to replace the current fleet of aging Marine One helicopters, also built by Sikorsky, that ferry the president and other top officials. The Navy oversees Marine Corps procurements.
WASHINGTON (Reuters) – The computerized logistics system that controls the Lockheed Martin Corp F-35 fighter jet still needs work, but it will be able to support three F-35s on their first overseas trip for two UK air shows this summer, a top Pentagon official said.
U.S. Marine Corps Lieutenant General Robert Schmidle, deputy director of the Pentagon’s Cost Assessment and Program Evaluation office, said he was “very confident” the F-35 logistics system would work when the new U.S. warplane makes its international debut in July.
WASHINGTON (Reuters) – The U.S. Navy on Monday awarded a $17.6 billion contract for 10 more Virginia-class, nuclear-powered attack submarines to General Dynamics Corp (GD.N: Quote, Profile, Research, Stock Buzz) and its major subcontractor, Huntington Ingalls Industries Inc (HII.N: Quote, Profile, Research, Stock Buzz), the largest ever Navy shipbuilding contract.
The contract, which funds work on two Virginia-class submarines per year from fiscal year 2014 through 2018, will net savings of over $2 billion, effectively giving the Navy 10 ships for the price of nine, said Navy Captain David Goggins, program manager for the Virginia-class submarines.
WASHINGTON (Reuters) – Mergers and acquisitions in the U.S. weapons industry are starting to edge up after a third year of declining revenues across the sector in 2013, according to two separate reports released on Monday.
PriceWaterhouseCoopers said deal volume in the aerospace and defense (A&D) industry was rising and could well exceed 2013 levels by the end of this year, especially if aerospace-focused deals on the commercial side remained strong.
WASHINGTON, April 27 (Reuters) – A new 10-year security pact
between the United States and the Philippines could lead to
modest increases in U.S. weapons sales in coming years,
especially for maritime surveillance equipment, analysts said on
The agreement, to be signed on Monday, establishes a
framework for an increased U.S. military presence in the
Philippines and is part of a “rebalancing” of U.S. resources
toward the fast-growing Asia-Pacific region.
WASHINGTON, April 25 (Reuters) – The Government
Accountability Office on Friday told lawmakers the U.S. Army
made a “sound” decision when it decided to skip prototypes in a
$6 billion competition for a new combat vehicle that was
unsuccessfully challenged by General Dynamics Corp.
The GAO, the investigative arm of Congress, said the Army
had taken other actions to reduce cost and risk on the new
vehicle program, including reducing requirements and opting to
modify an existing vehicle.
April 24 (Reuters) – U.S. weapons maker Raytheon Co
reported higher first-quarter profit on Thursday after a tax
credit and favorable pension adjustments and forecast strong
bookings and a slight gain in margins for the rest of the year.
Net income attributable to shareholders rose to $596
million, or $1.89 per share, from $488 million, or $1.49 a
share, a year earlier. The company, which makes missiles and
other military equipment, left its full-year forecast unchanged.
WASHINGTON (Reuters) – U.S. weapons maker Northrop Grumman Corp (NOC.N: Quote, Profile, Research, Stock Buzz) on Wednesday reported a higher-than-expected quarterly profit and raised its earnings forecast, despite a drop in sales and continued concerns about cuts in U.S. military spending.
Northrop, which makes unmanned planes, the B-2 bomber and a host of electronic equipment, said net income rose to $579 million, or $2.63 per share, in the first quarter from $489 million, or $2.03 a share, a year earlier.
WASHINGTON, April 23 (Reuters) – Australia’s decision to
order 58 more F-35 fighter jets built by Lockheed Martin Corp
by 2023 will help drive down the cost of the stealthy
warplane and strengthen the jet’s presence in Asia, a senior
Lockheed official said on Wednesday.
Steve O’Bryan, Lockheed’s vice president for F-35 business
development, said 10 countries had now committed to buying the
F-35, and Lockheed expected others to follow suit this year.
WASHINGTON, April 23 (Reuters) – U.S. arms makers complain
regularly that lower Pentagon spending on ships, jets and other
hardware will hit their earnings, but a string of
better-than-expected results this week show that layoffs and
cost-cutting have kept profits flowing, and growing.
Defense majors Lockheed Martin Corp, General
Dynamics Corp, and Northrop Grumman Corp have all
reported higher profits this week and raised their full-year
forecasts. In response, the Dow Jones index that tracks the 10
biggest aerospace and defense companies rose 2.2
percent on Wednesday.